Lee Manufacturing uses a standard cost system with overhead applied based on direct labor hours. The manufacturing budget for the production of 5,000 units for the month of May included the following information.
During May, 6,000 units were produced and the direct labor efficiency variance was $1,500 unfavorable. Based on this information, the actual number of direct labor hours used in May was:
A) 9,900 hours.
B) 10,100 hours.
C) 11,900 hours.
D) 12,100 hours.

Question

Lee Manufacturing uses a standard cost system with overhead applied based on direct labor hours. The manufacturing budget for the production of 5,000 units for the month of May included the following information.
 During May, 6,000 units were produced and the direct labor efficiency variance was $1,500 unfavorable. Based on this information, the actual number of direct labor hours used in May was:
A) 9,900 hours. 
B) 10,100 hours. 
C) 11,900 hours. 
D) 12,100 hours.

Quizplus · Accepted Answer

The Answer of  Lee Manufacturing uses a standard cost system with overhead applied based on direct labor hours. The manufacturing budget for the production of 5,000 units for the month of May included the following information.
 During May, 6,000 units were produced and the direct labor efficiency variance was $1,500 unfavorable. Based on this information, the actual number of direct labor hours used in May was:
A) 9,900 hours. 
B) 10,100 hours. 
C) 11,900 hours. 
D) 12,100 hours.

Lee Manufacturing Uses a Standard Cost System with Overhead Applied